Premier League clubs will need to include at least eight home-grown players out of a squad of 25 players from the 2010-11 season, as part of new guidelines laid down by league bosses.

Players registered to clubs affiliated to the Football Association (FA) or Football Association of Wales (FAW) for a three-year period prior to their 21st birthday will be considered home-grown as part of the new quota. Clubs will be able to make as many changes to their squad during the summer and January transfer windows before confirming the final list of 25 players at the end of August and again in January.

Premier League chief executive Richard Scudamore said: "It is not in the club's interests to stockpile players. It will make buying home-grown talent more attractive. We're not going down the route of a nationality test but what this will mean is that you just can't buy a team from abroad. "We think it will give clubs an extra incentive to invest in youth. We think that one of the benefits will be that it will help the England team."

Meanwhile, the Premier League has also confirmed that new financial rules will be introduced, which will require clubs to submit independently audited accounts to the league by 31 March each year. It is hoped that the new measures will act as an early warning system to prevent clubs from running into financial problems, while also ensuring that commitments will be fulfilled and that creditors are paid.